Reliance Retail Rolls Out Premium Food Store Freshpik Betting On Rich Indians
Freshpik will sell exotic vegetables and artisanal cheese to handcrafted muffins, personal care products, and kitchen accessories.
Mukesh Ambani-led Reliance Retail Ltd. announced its foray into the premium grocery segment as it looks to capitalise on the spending power of affluent Indians.
The gourmet food store – Freshpik – will sell exotic vegetables and artisanal cheese to handcrafted muffins, personal care products, and kitchen accessories, according to the press statement released on Thursday.
Freshpik will provide an integrated physical and digital shopping experience, including personalised 3D printed chocolates and a self-checkout feature, said Damodar Mall, the chief executive officer in charge of the grocery business at Reliance Retail.
Freshpik store in Mumbai. (Source: Reliance Retail)
The Indian gourmet food market is currently valued at $1.3 billion and is growing at a compounded annual growth rate of 20%, according to India Brand Equity Foundation. The first store is located inside Reliance’s Jio World Drive mall in the commercial hub of Bandra-Kurla Complex in Mumbai, which, is home to a fourth of the nation’s 1,007 billionaires, according to IIFL Wealth Hurun India Rich List 2021.
"It's a premium mall and any mall needs to have food and grocery for footfalls," Abneesh Roy, executive vice president of research at Edelweiss Financial Services told BloombergQuint. "Also, there won't be much competition as it is still a niche segment in India."
Some early entrants in this segment include Godrej’s Nature’s Basket (acquired by Spencer Retail Ltd.), Le Marche, Nuts ‘n’ Spices, and Future Group’s Foodhall. The segment is translating into brisk business for several homegrown brands like Araku Coffee, The Gourmet Jar, Yellow Butterfly, and Earthbowl Farms to name a few. That apart, gourmet food products are available on e-commerce platforms like Amazon, Flipkart, and Big Basket.